world class equipment management › mys_shared › ceca14 › handouts... · 2014-03-19 · world...

© 2014 FMI Corporation 0

World Class Equipment

Management

Presented by: Jim Schug Principal

FMI Corporation

CONEXPO 2014

Las Vegas


Who is FMI?

1

- Get In - Strategic Planning

Buyer Representation Acquisition Integration

- Get Work - BD Assessment

Market Perception Studies Presentation skills

- Develop People - Leadership Development Management Succession Executive Coaching / Peer

Groups

- Do Work- Productivity Improvement

Project Partnering Risk Management

- Get Out – Ownership Transition Seller Representation

Management Buyout / Valuation

FMI services span every phase of the construction firm’s lifecycle…

…to include:

60 years dedicated to the construction industry

84% of the ENR 400 Largest Contractors

60% of the ENR Top 600 Specialty Contractor

97% of the ENR Top 100 CM Firms

40% of the ENR Top 500 Design Firms


WHAT does “World-Class” mean to you?


CEO

To continue stockpiling cool equipment To be able to purchase whatever he wants at CONEXPO “The more equipment

we have, the better we are!”


CFO

Clarity in rental rates Keep away from the COO No ‘hidden costs’ or surprise big expenses A shop that runs with no overhead A five year budget to repair, rebuild and replace that remains flat and never increases A software program that does all of this for him


COO

EVERYTHING. NOW! Mechanics to work from 2 am – 4 am on equipment repairs Productivity “Operators don’t ever damage equipment!”


Field

Everything they request and coordinate for the project Everything they don’t request and forget to coordinate Their project served first For you to know exactly what they mean when they text you

“Get it here now!”


Estimators

Flexible equipment rates on bid day to allow us to win work “Can I have my stapler back?”


Charted Job Requirements

Equipment Manager Career Path


Equipment Manager

Documentation and Compliance

Budget Fleet Sizing

Field Management Vendors

Internal Customers Technicians

Equipment Company

vs. Construction

Company

Employee Management Vendor Management

Lifecycle Management

Purchasing


If we try to be all things to all people ….


Every Company is Different!

Strategy

Systems Structure


You Are Perfectly Designed for the Results You Are Getting!


What is Your Mission?

Provide the equipment, knowledge and resources to allow the company to accomplish its goal (Vague)

MUST be a company- level asset

Greatest single impact on equipment-based business


Operator Buy-In

Proactive maintenance

Predictive Maintenance

Preventive Maintenance

Corrective Maintenance Inefficiency

Efficiency

Root causes identified

Condition monitoring

User ownership

Reactive

Pre-set intervals

“Fix it when it goes down” vs. Peak Maintenance


Objective Evaluations

Must get objective view of your performance because the group above is conflicting in guidance


Evaluations

Fleet Masters (AEMP) Baldrige Quality/Excellence ISO 9001/ISO 140001 Green Fleet Cost benchmarking Scorecard CEM certification


Strategy

• Strategic Planning

•Business Planning

• Internal Strategy

•Communication

Customer Service

•Awareness •Approach • Image

Execution

•Processes •Working Capital

Management • Schedule

Management •Quality

Management

Risk Management

• Financial Condition

• Financial Capacity

•Continuity •Coverage • Lifecycle costs • Fleet Balancing

Organizational Health

•Culture •Talent

Management •Management

Depth and Quality

•Compensation •Recruiting

Scorecard Example


Why is Measurement and Feedback Important?

Everyone has the need to “light up the scoreboard” If your players don’t know the score of the game, how can

they be expected to win? You can’t manage what you don’t measure Good feedback improves the quality of information being put

into the system


Key Performance Indicators and Common Measurements

Downtime Utilization Parts on order PM/ Service hit rate Oil analysis program Abuse Neglect Repeat repair analysis/flags Abuse analysis Hours per reactive vs proactive by equipment and type Parts inventory cost % downtime due to parts

Small tools costs Fleet average age by type Life to date repair costs Sweet spot analysis Accident management Customer satisfaction Fleet costs Miles per gallon/hour Vehicles/technician Scheduled/unscheduled repairs Inventory Turns


Measurements

60%

30%

10% Goal Effort

10%

20%

70%

Actual Effort

Proactive

Reactive

Emergent


Material Cost Under or Overrun

59 83%

12 17%

Underrun Overrun

47 66%

24 34%

Underrun Overrun

Equipment Cost Under or Overrun

21

Material Cost Under or Overrun

Measurements


Planned Calls to the Shop YTD

% Planned YTD

% o

f Pla

nned

Cal

ls

22

Shop – Field Communication


Structure


Focus on Reducing Waste

Eight Wastes

Continuous Process Improvement

Just-in-Time (JIT)

Six Sigma

Lean


Lean – 5 S Concepts Apply

Sort

Set in Order

Shine Standardize

Sustain


Maintaining the Proper Balance is Key

Process- Focused

People- Focused


What Processes or Systems do You Have?

Do they work? Are they effective? Can they be improved?

Estimator/PM Supplies Plans & Specs to Field Mgr. & Notifies Everyone of the Pre-Job Planning Meeting Time

Field Mgr. Reviews Plans

Estimator/PM Conducts Pre-Job Planning Meeting & Develops Follow-

Up Action Plan as Issues Arise

Estimator/PM Distributes Copy of Follow-Up Action Plan to All Meeting

Participants

Operations Mgr. Reviews All Open Action Plan Items with PM at Weekly

PM Meeting

Project Team Continues to Meet Until All Action Items are Resolved


Common Equipment Management Processes

Rent, Own vs Lease Analysis Budgeting

Vendor agreements Inventory Management

Preventative Maintenance Repair, Replace, Rebuild Small tool management

Daily inspection Yard Management – 5 S Vehicle down procedure

Fuel Process Vehicle Dispatch/tracking

Work order Equipment utilization tracing


Becoming World-Class: Operational Excellence Model

Operational Excellence

Driven by customer

value

Vision and purpose aligned

Engaged employees

Work smarter

not harder

Identify Waste

Increase percentage of Proactive time

Lead, train and motivate

Develop action Plans and follow

through

Scoreboard and controls

Structure, Systems

And Processes


Personal Action Plan

What actions are you going to take as a result of this program? By when? What resources or

help will you need?

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Additional Resources

AEMP AEM John Dolce Preston Ingalls Dr. Mike Vorster Career Equipment Fleet Manager, CEMP Gold From Iron, Professional Asset Managers Turn Fleets Into

Powerful Profit Centers by Stan Orr, President & CSO


James C. Schug FMI Corporation 308 South Boulevard Tampa, FL 33606 Tel: 813.636.1254 Fax: 813.636.9601 Email: [email protected] Website: www.fminet.com

Jim is a principal and engagement manager with FMI, management consultants and investment bankers for the engineering and construction industry. With more than a decade of experience as an Army Officer, Jim led operations in complex and challenging environments. Some of his roles included strategic planning, training across large organizations and command with honors. He refined these skills working for a national builder, repeatedly leading his teams to successfully integrate operations, sales and customer service. Today, Jim is passionate about developing customized strategy and best-in-class operations with his clients. He applies practical experience with an in depth understanding of leading lasting behavioral change in dynamic environments. Jim earned a bachelor’s degree in quantitative economics from the United States Military Academy at West Point and a master of science in engineering management from the University of Missouri. Jim has completed post-graduate work with Cornell University in Achieving Competitive Advantage and is Certified in Lean Six Sigma. He has served in leadership positions on various local and national non-profit industry associations and is frequently invited to speak at industry events.

Jim Schug Principal

Thank you


About FMI

FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with value-added business solutions, including:

Strategy Development Market Research and Business Development Leadership and Talent Development Project and Process Improvement Mergers, Acquisitions and Financial Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers.

Knowledge • Expertise • Relationships

Visit us at www.fminet.com

world class equipment management › mys_shared › ceca14 › handouts... · 2014-03-19 · world...

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